Grvt to build $100 million USDY position under Ondo partnership

CeDeFi trading platform Grvt has partnered with Ondo Finance to build a position of up to $100 million in the tokenization firm’s yield-bearing USDY product over the next 12 months. Summary Grvt plans to build a $100 million position in Ondo Finance’s USDY token over the next 12 months. USDY returns will feed into Grvt Earn’s base rate, allowing users to access the yield without buying or managing the token directly. At USDY’s current APY of about 3.5%, a fully deployed $100 million position would generate roughly $3.5 million in annualized gross yield. The planned allocation would equal about 4.6% of USDY’s current $2.14 billion in assets under management. According to Grvt, USDY will be integrated into Grvt Earn, where the tokenized Treasury product will become another source of returns behind the platform’s existing base yield rather than an asset users need to buy or manage directly. Grvt plans $100 million USDY position Under the arrangement, Grvt will hold and manage USDY on its own balance sheet, while income generated by the position will feed into the single base rate offered through Grvt Earn. The structure is designed to give users access to returns from several sources through one balance. USDY is a tokenized secured note issued by Ondo Finance and backed primarily by short-term U.S. Treasurys, shares in Treasury-focused exchange-traded funds and bank deposits. Data cited in the announcement puts USDY’s assets under management at about $2.14 billion, with approximately 15,626 holders. At that size, a fully deployed $100 million Grvt position would account for about 4.6% of USDY’s current assets under management. With USDY currently offering an annual percentage yield of roughly 3.5%, the allocation could produce around $3.5 million in annualized gross yield if the full amount is deployed and the rate remains at that level. USDY accrues yield daily, and Grvt plans to combine the returns with other income already supporting Grvt Earn. Existing sources include revenue generated by the trading platform and lending activity through Aave. Grvt CEO Hong Yea said the company designed Grvt Earn so customers could keep their capital earning returns without managing the infrastructure behind individual yield sources. “We built Grvt Earn so users can keep their capital productive without having to manage the financial plumbing underneath it,” Yea said. “Together, we are creating a model where one balance can draw from multiple financial markets while remaining ready to trade.” Rather than distributing USDY directly to Earn users, Grvt will manage the token on its balance sheet and incorporate the resulting returns into the product’s base rate. Users can therefore retain a single balance on the platform while Grvt handles the underlying allocation. Yea said Ondo provides Grvt with access to the U.S.